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3 Tips to Raise Your Credit Score - Fast

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You're planning on buying a house in a few months and want to do everything possible to raise your credit score before you apply for a mortgage. What are the three most important things you can do today for a higher credit score tomorrow?

[Click here to check current credit card offers, including rates and terms.]

That's the question I asked Fair Isaac, the company that created the most popular credit score, the FICO score. And if you're wondering if working toward a higher score is worth the hassle, here's a cut-and-paste from the FICO home page:

A 100 point difference in your FICO score could mean over $40,000 extra in interest payments over the life of a 30 year mortgage on a $300,000 home loan.

So what did Fair Isaac spokesperson Craig Watts suggest? Before making any suggestions, he started with a caveat. There is nothing you can do to change your score overnight. At best, plan on two months, maybe three to see an actual increase — that's why you want to start the polishing process far in advance of any borrowing you intend to do.

Here were his three best tips.

Tip 1: Clean Up Your Credit History

Credit scores are drawn from information in your credit history, so anything that's wrong there will show up here. Go to annualcreditreport.com and pull a free copy of your credit history. Carefully comb through it and check it for mistakes and do what's possible to make it look its best.

Tip 2: Lower Your Utilization Ratio

Visit this page of FICO's website and you can learn all about how credit scores are calculated. One of factors you'll see there is called "Amounts Owed", which comprises about 30% of your credit score. And one of the components of this factor is how much you owe on credit cards vs. your available credit. That's the utilization ratio. As I explained in the video above, you want to keep your utilization ratio below 30%. So if your credit limit is $1,000 on one card, you don't want to owe more than $300 on that card.

Knowing this opens the door to several potential strategies.

• You could lower your utilization ratio by paying down your credit cards: that's the ideal scenario.

• If money's tight, then you could at least shuffle your balances between cards. For example, if you've got one card maxed out and two with small balances, move part of the big balance to each of the other two cards so all three show less than a 30% utilization ratio.

• Lower your utilization ratio by raising your credit limits. In other words, if you owe $1,000 on a card with a $1,000 credit limit, raising that credit limit to $3,000 will bring your utilization ratio back down to 30%. A simple call to the bank might be all you need.

Tip 3: Dust Off an Old Card

If you have an account that you've had for ages but haven't used for ages — and is still open — use it. While still technically open, the card company may no longer be reporting the account to the credit bureaus. Using the card will increase the amount of available credit you show — good for your utilization ratio. More important, the length of your credit history makes up 15% of your credit score. So bringing a very old account back to life could help.

[See a Guide to the Latest Credit Card Tricks]

But here are two things not to do. Don't open a new account — that definitely will lower your credit score, at least short-term. And don't close any accounts, since that would negatively impact your utilization ratio.

These are the fast ways to improve your credit score — at least if you consider "fast" to be 60 — 90 days. The simplest and best way to improve your credit score, however, is the slowest: paying your bills on time and allowing any negatives like late payments to gradually fade away over time. At 35%, payment history is the biggest component in your credit score.

One Last Tip

While things like late pays and delinquent accounts should drop off your credit history after 7 years (and the older they are the less impact they have on your score) there is a way to have them removed earlier. Simply ask the company that put negative information on your report to remove it. The process isn't hassle-free, but worth considering, especially if you're planning to borrow for a mortgage or other monster loan a few months from now.

 
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The Straight Scoop

Friday, August 6, 2010
I just downloaded this from the NAR website.

Pending Home Sales Ease in Post-Tax Credit Market              Washington, August 03, 2010

Pending home sales edged down with near-term sales expected to be notably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator, declined 2.6 percent to 75.7 based on contracts signed in June from an upwardly revised level of 77.7 in May, and is 18.6 percent below June 2009 when it was 93.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said lower home sales are expected in the short term. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” he said. “Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.”
 
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How many ways can you use salt? According to the Salt Institute, about 14,000! The salt website has tons of handy tips for using salt around the house, and the best of the bunch -- plus my additions -- are listed below.


I can't think of another more versatile mineral. Salt is the most common and readily available nonmetallic mineral in the world. In fact, the supply of salt is inexhaustible.

For thousands of years, salt (sodium chloride) has been used to preserve food and for cleaning, and people have continued to rely on it for all kinds of nifty tricks.

So with its nontoxic friendliness and status as an endlessly abundant resource, let's swap out some toxic solutions for ample, innocuous, and inexpensive salt.

There are a number of forms of salt produced for consumption (and by default, housekeeping!): unrefined salt (such as sea salt), refined salt (table salt), and iodized salt. Kosher salt is sodium chloride processed to have flat crystals. And in case you're wondering, Epsom salt is an entirely different stuff: magnesium sulfate to be exact (which is a salt that I consider to be, essentially, miraculous).

Here are just a few of the many ways you can put salt to good use in your home:

In the Kitchen

Aside from all of the alchemy that salt performs in terms of baking chemistry and food flavor, salt has a number of other great applications in the kitchen.

Test egg freshness.

Put two teaspoons of salt in a cup of water and place an egg in it -- a fresh egg will sink, an older egg will float. Because the air cell in an egg increases as it ages, an older egg is more buoyant. This doesn't mean a floating egg is rotten, just more mature. Crack the egg into a bowl and examine it for any funky odor or appearance -- if it's rotten, your nose will tell you. (Bonus fact: if you have hard-boiled eggs that are difficult to peel, that means they are fresh!)

Set poached eggs.

Because salt increases the temperature of boiling water, it helps to set the whites more quickly when eggs are dropped into the water for poaching.

Prevent fruits from browning.

Most of us use lemon or vinegar to stop peeled apples and pears from browning, but you can also drop them in lightly salted water to help them keep their color.

Shell nuts more easily.

Soak pecans and walnuts in salt water for several hours before shelling to make it easier to remove the meat.

Prevent cake icing crystals.

A little salt added to cake icings prevents them from sugaring.

Remove odors from hands.

Oniony-garlicy fingers? I like soap and water, then rubbing them on anything made of stainless steel (it really works), but you can also rub your fingers with a salt and vinegar combo.

Reach high peaks.

Add a tiny pinch of salt when beating egg whites or whipping cream for quicker, higher peaks.

Extend cheese life.

Prevent mold on cheese by wrapping it in a cloth moistened with saltwater before refrigerating.

Save the bottom of your oven.

If a pie or casserole bubbles over in the oven, put a handful of salt on top of the spill. It won't smoke and smell, and it will bake into a crust that makes the baked-on mess much easier to clean when it has cooled.


Personal Care

Extend toothbrush life.

Soak toothbrushes in salt water before your first use; they'll last longer.

Clean teeth.

Use one part fine salt to two parts baking soda -- dip your toothbrush in the mix and brush as usual. You can also use the same mix dissolved in water for orthodontic appliances.

Rinse your mouth.

Mix equal parts salt and baking soda in water for a fresh and deodorizing mouth rinse.

Ease mouth problems.

For cankers, abscesses, and other mouth sores, rinse your mouth with a weak solution of warm saltwater several times a day.

Relieve bee-sting pain.

Ouch? Immediately dampen area and pack on a small pile of salt to reduce pain and swelling. More bee-sting tips here.

Treat mosquito bites.

A saltwater soak can do wonders for that special mosquito-bite itch -- a poultice of salt mixed with olive oil can help too.

Treat poison ivy.

Same method as for treating mosquito bites. (Salt doesn't seem to distinguish between itches.)

Have an exfoliating massage.

After bathing and while still wet give yourself a massage with dry salt. It freshens skin and boosts circulation.

Ease throat pain.

Mix salt and warm water, gargle to relieve a sore throat.

Around the House

Deter ants.

Sprinkle salt at doorways, window sills, and anywhere else ants sneak into your house. Ants don't like to walk on salt.

Extinguish grease fires.

Keep a box of salt near your stove and oven, and if a grease fire flares up, douse the flames with salt. (Never use water on grease fires; it will splatter the burning grease.) When salt is applied to fire, it acts like a heat sink and dissipates the heat from the fire -- it also forms an oxygen-excluding crust to smother the fire.

Drip-proof candles.

If you soak new candles in a strong salt solution for a few hours, then dry them well, they will not drip as much when you burn them.

Keep cut flowers fresh.

A dash of salt added to the water in a flower vase will keep cut flowers fresh longer. (You can also try an aspirin or a dash of sugar for the same effect.)

Arrange artificial flowers.

Artificial flowers can be held in place by pouring salt into the vase, adding a little cold water and then arranging the flowers. The salt become solid as it dries and holds the flowers in place.

Make play dough.

Use 1 cup flour, 1/2 cup salt, 1 cup water, 2 tablespoons oil, and 2 tablespoons cream of tartar. Stir together flour, cream of tartar, salt, and oil, and slowly add water. Cook over medium heat stirring frequently until dough becomes stiff. Spread onto wax paper and let cool. Knead the dough with your hands until it reaches a good dough consistency. (Read about juice dyes here.)

Repair walls.

To fill nail holes, fix chips or other small dings in white sheet-rock or plaster walls, mix 2 tablespoons salt and 2 tablespoons cornstarch, then add enough water (about 5 teaspoons) to make a thick paste. Use the paste to fill the holes.

Deter patio weeds.

If weeds or grass grow between bricks or blocks in your patio, sidewalk, or driveway, carefully spread salt between the cracks, then sprinkle with water or wait for rain to wet it down.

Kill poison ivy.

Mix three pounds of salt with a gallon of soapy water (use a gentle dish soap) and apply to leaves and stems with a sprayer, avoiding any plant life that you want to keep.

De-ice sidewalks and driveways.

One of the oldest tricks in the book! Lightly sprinkle rock salt on walks and driveways to keep snow and ice from bonding to the pavement and allow for easier shoveling/scraping. But don't overdo it; use the salt sensibly to avoid damage to plants and paws.

Tame a wild barbecue.

Toss a bit of salt on flames from food dripping in barbecue grills to reduce the flames and calm the smoke without cooling the coals (like water does).

Cleaning

Salt works as an effective yet gentle scouring agent. Salt also serves as a catalyst for other ingredients, such as vinegar, to boost cleaning and deodorizing action. For a basic soft scrub, make a paste with lots of salt, baking soda and dish soap and use on appliances, enamel, porcelain, etc.

Clean sink drains.

Pour salt mixed with hot water down the kitchen sink regularly to deodorize and keep grease from building up.

Remove water rings.

Gently rub a thin paste of salt and vegetable oil on the white marks caused by beverage glasses and hot dishes on wooden tables.

Clean greasy pans.

Cast-iron skillets can be cleaned with a good sprinkling of salt and paper towels.

Clean stained cups.

Mix salt with a dab of dish soap to make a soft scrub for stubborn coffee and tea stains.

Clean refrigerators.

A mix of salt and soda water can be used to wipe out and deodorize the inside of your refrigerator, a nice way to keep chemical-y cleaners away from your food.

Clean brass or copper.

Mix equal parts of salt, flour, and vinegar to make a paste, and rub the paste on the metal. After letting it sit for an hour, clean with a soft cloth or brush and buff with a dry cloth.

Clean rust.

Mix salt and cream of tartar with just enough water to make a paste. Rub on rust, let dry, brush off and buff with a dry, soft cloth. You can also use the same method with a mix of salt and lemon.

Clean a glass coffee pot.

Every diner waitress' favorite tip: add salt and ice cubes to a coffee pot, swirl around vigorously, and rinse. The salt scours the bottom, and the ice helps to agitate it more for a better scrub.


Laundry

Attack wine spills.

If a tipsy guest tips wine on your cotton or linen tablecloth, blot up as much as possible and immediately cover the wine with a pile of salt, which will help pull the remaining wine away form the fiber. After dinner, soak the tablecloth in cold water for 30 minutes before laundering. (Also works on clothing.)

Quell oversudsing.

Since, of course, we are all very careful in how much detergent we use in our laundry, we never have too many suds. But if someone overfills ... you can eliminate excess suds with a sprinkle of salt.

Dry clothes in the winter.

Use salt in the final laundry rinse to prevent clothes from freezing if you use an outdoor clothes line in the winter.

Brighten colors.

Wash colored curtains or washable fiber rugs in a saltwater solution to brighten the colors. Brighten faded rugs and carpets by rubbing them briskly with a cloth that has been dipped in a strong saltwater solution and wrung out.

Remove perspiration stains.

Add four tablespoons of salt to one quart of hot water and sponge the fabric with the solution until stains fade.

Remove blood stains.

Soak the stained cloth in cold saltwater, then launder in warm, soapy water and boil after the wash. (Use only on cotton, linen, or other natural fibers that can take high heat.)

Tackle mildew or rust stains.

Moisten stained spots with a mixture of lemon juice and salt, then spread the item in the sun for bleaching -- then rinse and dry.

Clean a gunky iron bottom.

Sprinkle a little salt on a piece of paper and run the hot iron over it to remove rough, sticky spots.

Set color.

Salt is used commonly in the textile industry, but works at home too. If a dye isn't colorfast, soak the garment for an hour in 1/2 gallon of water to which you've added 1/2 cup vinegar and 1/2 cup salt, then rinse. If rinse water has any color in it, repeat. Use only on single-colored fabric or madras. If the item is multicolored, dry-clean it to avoid running all of the colors together.




I just downloaded this from the NAR website.

Pending Home Sales Ease in Post-Tax Credit Market              Washington, August 03, 2010

Pending home sales edged down with near-term sales expected to be notably lower in contrast to the spring surge when buyers rushed to take advantage of the home buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator, declined 2.6 percent to 75.7 based on contracts signed in June from an upwardly revised level of 77.7 in May, and is 18.6 percent below June 2009 when it was 93.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said lower home sales are expected in the short term. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” he said. “Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.”


Thomas Schuster
Thomas Schuster
Tomkat Homes Inc
7851 South Elati Street #204
Littleton, CO 80120
License No: 321920
Office: 303-794-8900
Direct: 720-480-4400
Alternate No: 303-816-9230
Mobile: 720-480-4410
Fax: 866-601-4689
Contact Thomas Schuster
http://www.facebook.com/thomas.g.schuster
http://www.linkedin.com/pub/tom-schuster/20/470/a57
 
 
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